Ship Owner's Attempt to Limit Payment for Sinking Tugboats Fails
Topic: Marine Incidents
TasPorts is suing the owner of the Goliath for $22 million.
In short:
Australia's highest court ruled in favor of Tasmania's port authority over the 2022 sinking of two tugboats.
TasPorts sought over $20 million in compensation. The ship owner argued costs should be capped at $15 million.
What's next?
The ship owner faces a local court for alleged environmental harm.
A shipping company's attempt to avoid paying millions over the incident was overturned by Australia's High Court.
The bulk cement carrier MV Goliath crashed into docked tugboats, causing them to sink.
The Goliath was traveling from Melbourne to Devonport when it hit the docked tugboats.
The clean-up of diesel and pollutants was extensive, and the salvage took over six months.
TasPorts sued the ship's owner for over $20 million in compensation.
Today's High Court ruling means the case will continue before the Federal Court.
Ship company seeks to limit cost
The incident unfolded as Goliath attempted a tight turn in Devonport's Mersey River.
An ATSB review found an incorrect steering setting caused the ship to speed up before hitting the tugs.
TasPorts began legal action against CSL Australia, seeking $22 million, including $17 million for clean-up and salvage.
Tugboats York Cove and Campbell Cove were docked at the time of the incident.
A Federal Court judge sided with the shipping company, which argued liability could be limited under a maritime convention.
The convention allows claims to be limited in certain circumstances.
TasPorts won an appeal, which CSL then appealed to the High Court.
The High Court ruled in TasPorts' favor, saying CSL could not rely on the convention to limit liability.
The High Court unanimously dismissed the appeal.
CSL was not trying to avoid liability but limit it to $15 million.
Maritime lawyer Chris Keane said the ruling means his client's claims will return to the Federal Court.
The proceedings continue due to a dispute over the amount owed.
The ruling will have no bearing on whether TasPorts is ultimately successful in its pursuit of compensation.
The ruling provides greater certainty for port authorities and insurance companies.
Claims for wreck removal will fall outside the limitation fund under Australian law.
TasPorts' interim chief executive acknowledged the High Court's decision to dismiss CSL's appeal.
The matter has broader implications for port operators across Australia.
Environmental charges in local court
CSL Australia has been charged with causing serious environmental harm and environmental nuisance.
The charges were listed in the Devonport Magistrates Court.
The prosecution alleged the crash caused the tugs to sink and release hydrocarbons into the Mersey River.
The York Cove was sunk, releasing an estimated 69,000 liters of diesel and oil.
The release of hydrocarbon pollutants interfered with the environment.
The case has been adjourned for plea in June.
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